LeMaitre to acquire XenoSure rights

theflyonthewall.com

LeMaitre Vascular (LMAT) announced that it has signed an agreement to acquire the manufacturing and distribution rights to XenoSure from Neovasc on October 31 for $4.6mm, subject to standard closing conditions. XenoSure is a bovine pericardium patch used primarily for carotid and vascular reconstructions. As part of the transaction, the two parties have also signed a back-up supply agreement to assure product availability during the manufacturing transfer. LeMaitre Vascular recorded XenoSure revenues of $4.5mm in the twelve months ending September 30 vs. $2.8mm in the prior 12-month period, a 61% increase. Neovasc retains the right to process and distribute bovine pericardium for all other applications that do not compete directly with the Xenosure vascular surgical patch business. During the manufacturing transfer, the company expects $300,000 of incremental expenses in Q4 2012 and $600,000 in 2013. Beginning in 2014, the transaction is expected to be accretive to operating income by approximately $1.0mm a year, growing at the same rate as XenoSure's sales

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